Exclusive Transport Tesla to enter Saudi Arabia within months By Megha Merani January 16, 2025, 1:12 AM Reuters Saudi Arabia will be the latest Gulf market for Tesla, joining Dubai, Jordan, Qatar and Israel Sales through pop-up stores Supercharger network rollout Riyadh target of 30% EVs Elon Musk’s Tesla is set to launch in Saudi Arabia this quarter, marking its entry into one of the world’s largest oil-producing nations as it continues expanding across the Gulf, sources familiar with the plans told AGBI. The US electric vehicle maker will open sales through pop-up stores and establish a showroom and service centre, the sources said. It also plans to roll out a supercharger network, accessible to other EV brands. Tesla has not responded to a request for comment. Tesla’s expansion into Saudi Arabia could reshape a market characterised by some of the world’s cheapest fuel prices, but also help to increase interest in electric mobility in the kingdom, where the appetite for luxury vehicles is among the highest globally on a per capita basis. EV penetration is still low in the kingdom at just over 1 percent of overall car sales in Saudi Arabia, according to PwC’s 2024 Electric Mobility Outlook. Only 7 percent of all vehicle models in the country are electric. Charging infrastructure remains limited, with only 104 charging stations nationwide in 2023, according to charging station locator Electromaps. However, the government has set a goal for 30 percent of vehicles in Riyadh, its most congested city, to be electric by 2030 as part of its efforts to cut urban emissions by 50 percent. Interest in EVs is growing, and PwC notes that more than 40 percent of Saudi consumers are considering purchasing an EV in the next three years. Beyond Tesla’s entry into Saudi Arabia, the Gulf’s EV market is heating up. Ineos Automotive, the UK carmaker backed by billionaire Sir Jim Ratcliffe, is considering launching its Fusilier electric vehicle in the Middle East after encountering difficulties with governments across Europe. Shanghai-based Nio has also set up shop in the UAE, opening its first showroom in the Mena region at The Galleria Al Maryah Island in Abu Dhabi. The UAE leads regional adoption, with more than 28,000 registered EVs in 2023. The country is heavily investing in charging networks, which are still a hindrance, aiming for EVs to account for 15 percent of new car sales by 2030. Saudi Arabia is also nurturing its homegrown EV industry. Lucid Group, in which the Public Investment Fund holds a 60 percent stake, delivered 10,241 vehicles in 2024, surpassing expectations. Turkey hikes tariffs on Chinese cars to boost investment PIF-backed EV maker Lucid beats 2024 delivery estimates Ineos and Porsche diverge on Middle East’s EV potential US EV maker Rivian – which is backed by Saudi conglomerate Abdul Latif Jameel and Amazon – posted better-than-expected deliveries in the fourth quarter of 2024. Ceer, a joint venture between the PIF and Taiwanese manufacturer Foxconn, plans to begin EV production in 2025, aiming to manufacture 500,000 EVs annually by 2030 for domestic use and export. Tesla first entered the Gulf in 2017 with a Dubai showroom. It also operates in Jordan, Qatar and Israel, according to its website. Tesla’s entry comes amid broader challenges in the global EV market, as Chinese brands accounted for two-thirds of global EV sales in the first 11 months of 2024 – a 40 percent year-on-year increase compared with global growth of 25 percent. Tesla posted its first annual sales decline in a decade in 2024, with deliveries down about 1 percent. Still, Musk’s vision for autonomous vehicles and Tesla’s “Full Self-Driving” software have fueled investor interest, contributing to a more than 60 percent rise in its stock in late 2024. The company also launched an updated version of its Model Y, its best-selling car, in China last week.